Hospital project gets thumbs up

Oconomowoc Focus, March 6, 2007

Rebecca Seymour, correspondent

Town of Summit - After six years of meandering through red tape and litigation, plans for a $189 million hospital in the Town of Summit became more reality than dream last Thursday.

Based on recommendations and conditions set forth by the town's Plan Commission, town leaders unanimously approved the building, site and operational development agreement with Aurora Health Care.

The board's approval gives the town's building inspector the go-ahead to review plans for the 593,000-square-foot hospital and 180,000-square-foot medical clinic and issue required permits.

According to Michael Scholl, project designer for Hammes Co., the healthcare facilities developer in charge of the project, Aurora hopes to begin construction this spring.

Thursday's meeting made that goal more realistic, said Scholl. Continuing to refine specific project details is all part of the development process.

As plans are finalized, Scholl said, developers and town officials will work together to hammer out what's best for all parties.

"We're willing to listen to their ideas and come up with some of our own. We need to work together to find a balance," said Scholl.

Preconstruction site preparation, including earth moving and grading by Mann Brothers Inc. is already underway. Town officials approved extending the amount of time permitted each day for construction work at the site from 12 hours to around the clock.

"In order to accomplish the amount of work needed to ready the property for building, they need to be there 24 hours a day," said Town Planner, Henry Elling.

Through the development agreement, Aurora has agreed to make scheduled payments to the Town of Summit. Annual payments are intended to defray fiscal impacts and costs for services arising from the development and take the place of property taxes on the nonprofit, tax-exempt hospital.

Aurora will pay $1.7 million to the town upon issuance of the building permit.

$1.5 million of the first payment will be placed into an escrow fund to be allocated toward construction of a new fire station to be located in the Pabst Farms development. The station will be jointly occupied and operated by the Town and the City of Oconomowoc.

When the occupancy permit is issued, Aurora will make a payment of $1.2 million to the town. Both the $1.7 and $1.2 million payments will be considered advance payments on the first several years of annual payments, up to 2013.

Annual payments of $100,000 per year will be paid 2013 to 2018, $200,000 per year for 2019 through 2035 and increasing to $250,000 per year 2036 and thereafter. After 30 years, annual payments will be subject to Consumer Price Index increases.

The agreement also requires Aurora to pay real and personal property taxes on portions of the medical complex that do not qualify as tax-exempt. These could include the gift shop and pharmacy.

Town of Summit Chairman Len Susa said he was satisfied with the outcome of Thursday's meeting and acknowledged the work that went into defining guidelines for the next stages of the development.

"I'm very proud of our Plan Commission. They've done an excellent job in preparing the conditions for this project. Their talents are incredible," said Susa.